Sensex, Nifty Pare Some Losses Amid Weak Asian Cues
Caution on Asia limits gains in Indian stocks.
Domestic equity markets opened on a note of caution amid weak cues from the Asian markets. The BSE benchmark Sensex recovered marginally after opening in the red while the Nifty held on to the 7,700 mark.
Banks and auto stocks lead the losses though PSU bank stocks outperformed. Capital goods and FMCG sectors were trading in the green. Realty stocks were on fire with HDIL and DLF up over 4 percent each.
The BSE Midcap and the CNX Small Cap indices outperformed the largecaps.
BHEL was the biggest gainer on the Sensex, followed by ITC, Asian Paints, Cipla, Wipro and L&T. Bharti Airtel, Adani Ports, GAIL, M&M and ICICI Bank were the key losers.
Japan Leads Asian Markets Lower
Asian shares and the dollar both lost more ground as investors began the new quarter in a cautious mood, with glimmers of life in China’s economy offset by a darkening mood in Japan.
Activity in China’s vast manufacturing sector expanded in March for the first time in nine months as the official Purchasing Managers’ Index (PMI) surprised at 50.2. A private version of the PMI also beat forecasts by rising to its highest in 13 months.
But markets seemed underwhelmed and shares in Shanghai drifted 0.6 percent lower.
Not helping was Standard & Poor’s decision to cut China’s credit outlook to negative, saying Beijing’s reform agenda was likely to proceed more slowly than expected.
A gloomy survey of Japanese manufacturers added to selling pressure at the start of a new financial year and dragged the Nikkei down 2.8 percent to a five-week low.
The red ink spread across the region as MSCI’s broadest index of Asia-Pacific shares outside Japan skidded 1.1 percent.
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